Xcel Solutions Final Exam;
California Life, Accident, and
Health Insurance. | Questions and
correct answers | Latest version
2024/2025
Medicare Part B has an initial enrollment period. How many months after an individual's 65th
birthday month does this enrollment period end? - ANSWER -3 months
Which of the following is NOT true regarding a family policy that covers children?
- Term insurance is used for the children's rider
- Adopted children can be covered
- Conversion of a child's coverage to permanent insurance requires evidence of insurability
- Additional children can be added at no cost - ANSWER -Conversion of a child's coverage to
permanent insurance requires evidence of insurability
Jerry is an insured who understands his age on his life insurance application, paying $12 per $1,000
of insurance instead of $15 per $1,000. If he dies, how will the adjusted death benefit be calculated?
- ANSWER -12/15th of the policy's face amount
Moral hazard is described as the - ANSWER -Increased chance of a loss because of the insured's
dishonest tendencies
What prevents a life insurance policy from being rescinded by the insurer after being in force for two
years? - ANSWER -Incontestability clause
Which of the following is NOT a requirement of a contract?
- Parties involved must be competent
- Offer and acceptance must be involved
- Contract must have a legal purpose
- Equal consideration is required between the involved parties - ANSWER -Equal consideration is
required between the involved parties
Which of the following is NOT considered to be a definition of the term "loss"?
,- The amount an insurance company must pay because of an insurable event
- An insurable event that takes place which results in a payment made by the insurance company
- Probability that an event will occur
- Unintentional decrease in the value of an asset due to a peril - ANSWER -Probability that an event
will occur
What is required after a life agent sells an insurance policy to an applicant without being appointed
by the insurer? - ANSWER -Notice of appointment must be submitted to the commissioner
Which of the following services are health maintenance organizations (HMO's) NOT required to
provide?
- Preventative services
- Hospitalization
- Prescription drugs
- Emergency services - ANSWER -Prescription drugs
A person who asserts a right of recovery under an insurance policy is called - ANSWER -claimant
When an insurance company requests an attending physician's report, the request must be
accompanied by a - ANSWER -copy of the signed authorization
Which of the following actions is NOT allowed by Health Insurance Counseling and Advocacy
Program (HiCAP) counselors?
- Medical record keeping assistance
- Charge a fee
- Assist in understanding Medicare Supplements
Assist in policy evaluation - ANSWER -Charge a fee
What must an applicant do in order to authorize the release of an attending physician report? -
ANSWER -Sign a consent form
Failure to report background changes within 30 days as required under section 1729.2 of the
California insurance code could subject a license or applicant to - ANSWER -Denial, suspension,
and/or fine
Which statement is true regarding policy dividends?
- Dividends are always taxable
- A dividend option is selected by the insured at the time of policy purchase
- Nonparticipating policies issue dividends
, - Dividends are always guaranteed - ANSWER -A dividend option is selected by the insured at the
time of policy purchase
Which of the following is NOT typically covered under vision care insurance?
- Examinations
- Eye surgery
- Contacts
- Eyeglasses - ANSWER -Eye surgery
Restoring an insured to the same condition as before a loss is known as - ANSWER -Principle of
indemnity
Which of the following is a type of insurance where an insurer transfers loss exposures from policies
written for its insureds?
- Treaty insurance
- Captive insurance
- Reinsurance
- Mutual insurance - ANSWER -Reinsurance
Under a disability income insurance policy, which criteria must be met for "bodily injury" to be
classified as accidental? - ANSWER -The cause may be intentional, but the result must be accidental
The free-look period for life insurance policyowners age 60 or older is - ANSWER -30 days
Which of the following does Medicare Part A NOT provide coverage for?
- Hospice
- Inpatient care
- Hospitalization
- Doctor's Services - ANSWER -Doctor's Services
Rating an individual's need for long-term care benefits can be measured by - ANSWER -Activities of
daily living
Which of the following describes the number of deaths in a year compared to the number of people
in a select group?
- Risk ratio
- Mortality rate
California Life, Accident, and
Health Insurance. | Questions and
correct answers | Latest version
2024/2025
Medicare Part B has an initial enrollment period. How many months after an individual's 65th
birthday month does this enrollment period end? - ANSWER -3 months
Which of the following is NOT true regarding a family policy that covers children?
- Term insurance is used for the children's rider
- Adopted children can be covered
- Conversion of a child's coverage to permanent insurance requires evidence of insurability
- Additional children can be added at no cost - ANSWER -Conversion of a child's coverage to
permanent insurance requires evidence of insurability
Jerry is an insured who understands his age on his life insurance application, paying $12 per $1,000
of insurance instead of $15 per $1,000. If he dies, how will the adjusted death benefit be calculated?
- ANSWER -12/15th of the policy's face amount
Moral hazard is described as the - ANSWER -Increased chance of a loss because of the insured's
dishonest tendencies
What prevents a life insurance policy from being rescinded by the insurer after being in force for two
years? - ANSWER -Incontestability clause
Which of the following is NOT a requirement of a contract?
- Parties involved must be competent
- Offer and acceptance must be involved
- Contract must have a legal purpose
- Equal consideration is required between the involved parties - ANSWER -Equal consideration is
required between the involved parties
Which of the following is NOT considered to be a definition of the term "loss"?
,- The amount an insurance company must pay because of an insurable event
- An insurable event that takes place which results in a payment made by the insurance company
- Probability that an event will occur
- Unintentional decrease in the value of an asset due to a peril - ANSWER -Probability that an event
will occur
What is required after a life agent sells an insurance policy to an applicant without being appointed
by the insurer? - ANSWER -Notice of appointment must be submitted to the commissioner
Which of the following services are health maintenance organizations (HMO's) NOT required to
provide?
- Preventative services
- Hospitalization
- Prescription drugs
- Emergency services - ANSWER -Prescription drugs
A person who asserts a right of recovery under an insurance policy is called - ANSWER -claimant
When an insurance company requests an attending physician's report, the request must be
accompanied by a - ANSWER -copy of the signed authorization
Which of the following actions is NOT allowed by Health Insurance Counseling and Advocacy
Program (HiCAP) counselors?
- Medical record keeping assistance
- Charge a fee
- Assist in understanding Medicare Supplements
Assist in policy evaluation - ANSWER -Charge a fee
What must an applicant do in order to authorize the release of an attending physician report? -
ANSWER -Sign a consent form
Failure to report background changes within 30 days as required under section 1729.2 of the
California insurance code could subject a license or applicant to - ANSWER -Denial, suspension,
and/or fine
Which statement is true regarding policy dividends?
- Dividends are always taxable
- A dividend option is selected by the insured at the time of policy purchase
- Nonparticipating policies issue dividends
, - Dividends are always guaranteed - ANSWER -A dividend option is selected by the insured at the
time of policy purchase
Which of the following is NOT typically covered under vision care insurance?
- Examinations
- Eye surgery
- Contacts
- Eyeglasses - ANSWER -Eye surgery
Restoring an insured to the same condition as before a loss is known as - ANSWER -Principle of
indemnity
Which of the following is a type of insurance where an insurer transfers loss exposures from policies
written for its insureds?
- Treaty insurance
- Captive insurance
- Reinsurance
- Mutual insurance - ANSWER -Reinsurance
Under a disability income insurance policy, which criteria must be met for "bodily injury" to be
classified as accidental? - ANSWER -The cause may be intentional, but the result must be accidental
The free-look period for life insurance policyowners age 60 or older is - ANSWER -30 days
Which of the following does Medicare Part A NOT provide coverage for?
- Hospice
- Inpatient care
- Hospitalization
- Doctor's Services - ANSWER -Doctor's Services
Rating an individual's need for long-term care benefits can be measured by - ANSWER -Activities of
daily living
Which of the following describes the number of deaths in a year compared to the number of people
in a select group?
- Risk ratio
- Mortality rate
